£1.1 Billion UK Expansion
CareTrust REIT enters the U.K. market with a £1.1 billion care-home acquisition.
Anonymous
Key Points
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The first closing consisted of 23 completed care homes and a 24th home whose acquisition was pending regulatory approval; the facilities are described as recently built private-pay care homes.
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The first-phase purchase was funded with proceeds from settlements of forward equity agreements and debt; the company also drew on its revolving credit facility, according to another report.
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The lease terms include fixed annual rent escalators and renewal options. After an initial lease-up period, CareTrust or an affiliate may acquire the companies operating the homes, with each operating-company price based on a specified multiple of its implied annualized mature EBITDA, subject to adjustments.
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CareTrust said it had closed approximately $488 million in additional investments since its second-quarter 2026 earnings report, including preferred equity and debt related to skilled-nursing portfolios, as well as a previously announced $380 million U.S. Southwest skilled-nursing portfolio.
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The agreement includes an option for CareTrust to acquire the entire LNT platform in the future.
CareTrust REIT closed its first phase of a major U.K. expansion on October 1, 2026, acquiring 24 care homes from LNT Care Developments for approximately £576 million. The full deal covers up to 45 newly built properties across England and Wales valued at £1.1 billion, with the remaining 21 homes expected to close through 2027 Bisnow. The acquisition marks CareTrust's entry into the U.K. care-home market and brings its year-to-date investment total to a record £2.7 billion.
The properties will initially be leased to Crystal Care subsidiaries under triple-net agreements, with LNT guaranteeing lease payments. CareTrust has the option to later acquire the operating companies and integrate them into its senior housing structure, creating a 2,970-bed portfolio Yahoo Finance. The company also raised its 2026 financial guidance following the deal.
First Phase Closes With 24 Homes
CareTrust completed the first closing on October 1, consisting of 23 fully completed care homes and one facility pending regulatory approval Ticker Report. The homes are recently built private-pay facilities located across England and Wales. Funding came from settlements of forward equity agreements and debt, plus draws on CareTrust's revolving credit facility.
Lease Terms Include Fixed Escalators and Future Buyout Options
The properties are leased under triple-net agreements with fixed annual rent escalators and renewal options Bisnow. After an initial lease-up period, CareTrust or an affiliate can acquire the operating companies. Each operating company's purchase price is based on a multiple of its mature EBITDA, subject to adjustments. LNT guarantees lease payments during the transition.
Record Investment Year Accelerated by Multiple Deals
The LNT transaction is part of a major investment push by CareTrust. Since Q2 2026, the company closed approximately £488 million in additional deals, including preferred equity and debt for skilled-nursing portfolios Yahoo Finance. These additions, combined with a previously announced £380 million U.S. Southwest skilled-nursing portfolio purchase, brought Q3 and subsequent investments to roughly £1.6 billion.
CareTrust Gains Option to Acquire Entire LNT Platform
Beyond the 45 care homes, CareTrust negotiated the right to acquire the entire LNT Care Developments platform in the future Law360. The deal structure gives CareTrust flexibility to expand its U.K. operations incrementally as homes are completed and regulatory approvals are granted through 2027. The agreement reflects CareTrust's strategy to grow its healthcare real estate portfolio internationally.
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